Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law,americast.usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Wed, Oct 14 1992 Date: Wed, 14 Oct 92 04:48:25 EDT Message-ID: 10-14 0000 DECISIONLINE: Business Law USA TODAY Update Oct. 14, 1992 Source: USA TODAY:Gannett National Information Network COURT TO RULE ON MEDICARE: The Supreme Court Tuesday agreed to decide if the government inadequately pays back some health care suppliers for Medicare. Several hospitals have complained that the government doesn't take into account the higher costs of providing care at some facilities. The justices agreed to hear a case Wednesday involving two Nebraska hospitals that say it costs them more to provide Medicare service. ANTITRUST CASE SENT BACK: The Supreme Court Tuesday sent an antitrust decision back to a lower court. The high court sent back to the U.S. Sixth Circuit Court of Appeals the case of Virtual Maintenance Inc. vs. Prime Computer. The appeals court reversed a decision in favor of Virtual. Prime had a policy of tying software revisions to its hardware maintenance contracts. PESTICIDE RULING SET ASIDE: The Supreme Court Tuesday set aside a lower court ruling that individuals cannot sue pesticide manufacturers for inadequate warnings. The basis for the ruling being set aside: The high court's ruling that certain product liability suits against cigarette manufacturers are not preempted by federal cigarette labeling statutes. The lower court suit was against Dow Chemical. DANIELS SUES OVER CABLE BILL: Several provisions of the new cable TV reregulation law are unconstitutional and victimize 60% of America's TV viewers, says cable pioneer Bill Daniels in a lawsuit filed Tuesday in U.S. District Court for the District of Columbia. Last week, Turner Broadcasting System Inc. filed a similar challenge with the same court. BILL CALLED SPEECH-RESTRICTIVE: A lawsuit by Bill Daniels, owner of Daniels Cablevision Inc., claims several sections of the Cable Act constitute "content-based, speech-restrictive and speaker-preference regulation of the cable television press." The Cable firm serves Carlsbad, Calif., and has 50,000 subscribers. Daniels says he has received support from executives of several cable operating companies. TIME SUES BUSH:QUAYLE '92: TIME Magazine is filing suit against the Bush:Quayle '92 campaign for infringement of copyright, trademark and other laws, charging that the campaign is making unauthorized use of TIME's April 20, 1992 cover "Why Voters Don't Trust Clinton" in a television commercial. The magazine protests "the implicit suggestion ... that TIME endorses" the commercial's contents. LONE STAR MAY SHIFT BOARD: Lone Star Industries said Tuesday it is contemplating electing to its board three members of legal opponent Scope Industries Inc. as a result of a court order. Three incumbent directors will resign. Lone Star is a former Fortune 500 company that filed for bankruptcy protection nearly two years ago. Lone Star also said it expects to submit a reorganization plan by the end of the month. FDIC BACKS DOWN ON STANDARDS: The Federal Deposit Insurance Corp.'s board Tuesday yielded to pressure from the banking and construction industries and backed off a proposal to set rigid standards for real estate lending. The board decided to issue general guidelines, with loans outside the guidelines being subject to increased scrutiny. Lenders and borrowers had sent an avalanche of negative mail on the issue. GM CHAIRMAN DENIES RIFT: Embattled GM Chairman Robert Stempel denied a report Tuesday that there is a rift between the automaker's senior management and outside directors that could get him fired by the end of the year. Stempel said management and outside GM directors are not in disagreement over the position to take in bargaining with employee unions. He was responding to a Washington Post report. TEXAS PROBING UTILITY RATES: Southwestern Public Service Co. said Tuesday the Public Utility Commission of Texas has initiated a procedural filing to review the electric utility's rates. The review is based on the commission staff's semi-annual Earnings Monitoring Report that says Southwestern's revenues for 1991 appeared higher than necessary to earn an appropriate rate of return. HUSH PUPPIES SUIT SETTLED: Wolverine World Wide said Tuesday that Ben Elias Industries has agreed to pay an undisclosed amount in damages to settle a Hush Puppies trademark infringement suit. Wolverine, which owns the Hush Puppies trademark, filed the suit in August along with Haddad Apparel Group, which makes Hush Puppies clothing. Elias said it would send notices acknowledging guilt to its customers. JAPAN HOLDS UP NEW SERVICE: United Airlines Tuesday said it might postpone its new New York-Tokyo-Sydney service because Japan is refusing to honor the terms of the U.S.-Japan Air Services Agreement, under which the flight service is authorized. The government refused to accept the portion of United's schedule containing the new flight, although United said there is no legal bases for Japan to refuse the filing. USAIR PROJECTS SAVINGS: USAir said Tuesday that its new contract with the International Association of Machinists calls for wage savings of $20 million over the next 12 months, through wage reductions and a pay scale freeze. In addition, the company will realize $40 million in productivity improvements in 1993. When fully implemented, annual productivity savings will reach $50 million, the company said. CSS MAY MERGE WITH HOLDING CO.: CSS Industries Inc. Tuesday said it is discussing a merger with Philadelphia Industries Inc. CSS is a diversified holding company. Philadelphia is a holding company and investment vehicle whose main asset is its 45.5% stake in CSS. James Baxter, vice president of finance at both companies, said the move is being considered to simplify the companies' corporate structures. CITIZENS FILE FORMAL COMPLAINT: A group of citizen taxpayers led by a Tacoma, Wash., attorney Tuesday filed a formal complaint with the Public Disclosure Commission alleging unlawful campaign activities by members of the Washington congressional delegation, the governor and others involved in last year's anti-term limit campaign. The complaint charges that the members illegally raised funds. CAMPBELL MAY UP BID FOR ARNOTTS: Campbell Soup may have to sweeten its $582 million offer for Australian cookie maker Arnotts but analysts say a 40% hike in the bid price suggested by Arnotts' financial adviser is unlikely. Campbell Soup says it expects the bid it made for Arnotts Monday to succeed. Analysts say Campbell is in a strong bargaining position since it already owns a 33% stake in Arnotts. Business Law Editor: Beth Mann. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM